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Investing.com -- Shares of Visionary Holdings (NASDAQ: GV) surged 50% following the company’s announcement of its strategic venture into the new energy vehicle battery swap market in Hong Kong. This move is anticipated to solidify Visionary’s market position and boost investor confidence.
The company has entered into a significant agreement with PEGASUS International Group (Hong Kong) to establish 600 battery swap/charging stations by 2029, with the first 10 stations expected to be operational by 2025. This initiative aligns with the Hong Kong government’s push towards new energy vehicles, planning to construct 3,000 high-speed battery swap/charging stations by 2030. Visionary’s investment of HK$420 million aims to secure approximately 20% of the market share in this burgeoning sector, positioning the company to capitalize on the growing demand for battery swap services.
The financial underpinning for this expansion comes from the US$1 billion financing arrangement with Alfardan Group of Qatar, which has now entered the formal loan process. This development provides a robust financial foundation for Visionary’s investment and underscores the company’s resource integration capabilities and growth potential.
Visionary’s collaboration with PEGASUS International Group leverages mutual strengths, with Visionary bringing its expertise in equipment, technology, and operating funds, while PEGASUS offers site resources. This cooperation is not only in line with Visionary’s long-term strategy but also reflects the industry’s upward trajectory. As the new energy vehicle market flourishes, the demand for battery swap/charging services is expected to rise, offering Visionary an opportunity to enhance its competitive edge and deliver increased shareholder value.
The company has committed to adhering to U.S. information disclosure and compliance standards, ensuring transparent communication with its investors regarding the project’s progress. Visionary’s forward-looking approach is geared towards fostering innovation, cooperation, and shared success, which is likely to contribute to the growth of Hong Kong’s new energy vehicle industry and support the continuous appreciation of Visionary’s market value.
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